Tech war: China’s semiconductor equipment purchases slump as US and allies boost domestic chip production, data shows
- Sales of semiconductor equipment to China dropped 23 per cent year on year in the first quarter amid US export curbs, according to SEMI data
- The US, which is trying to boost domestic chip production, and the rest of North America bought 50 per cent more semiconductor equipment during that period
During the March quarter, sales of chip-making equipment to companies in China were down 23 per cent year on year and 8 per cent from the previous three months to US$5.86 billion, according to data released on Tuesday by SEMI, a global industry association.
Despite the drop, China was still the world’s second-largest market for semiconductor equipment, behind Taiwan and ahead of South Korea.
For comparison, semiconductor equipment sales to China in the first quarter of 2022 surged 27 per cent year on year to US$7.6 billion, SEMI data showed. At the time, the country was the world’s largest market for semiconductor equipment.
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Under expanded trade restrictions imposed by the Biden administration last October, Chinese companies are barred from buying advanced chip-making tools from the US without special permission. Japan is set to impose similar export curbs in July to restrict the sales of 23 types of advanced chip-related equipment and materials.